How to Calculate ARPU (2026)

Average Revenue Per User (ARPU) measures how much revenue you generate from each active user or customer over a given period — typically a month. It is a foundational SaaS and subscription metric that benchmarks monetization efficiency, informs pricing decisions, and sits at the heart of every unit economics model. Use the ARPU Calculator to compute it in seconds from your revenue and user count.

The ARPU Formula

ARPU = Total Revenue ÷ Number of Active Users. For a subscription business, use MRR as your revenue input to get monthly ARPU. Use ARR for an annualized figure. The user count should reflect active paying users during the same period — not trial accounts, free-tier users, or churned users unless your business model explicitly includes them. For example, $48,000 MRR across 600 active subscribers gives a monthly ARPU of $80.

ARPU by Business Model

What counts as a healthy ARPU varies widely by market and model. Consumer apps often run at a few dollars per month; prosumer SaaS typically sits in the $20–$100 range; B2B platforms can reach hundreds or thousands. The table below shows typical ARPU ranges by segment to help you benchmark your own number.

Using ARPU to Diagnose Growth Quality

Tracking ARPU over time reveals whether growth is compounding or diluting. If ARPU rises as you add customers, your acquisition is landing larger accounts or your upsell motion is working. If ARPU falls, you may be acquiring smaller customers, over-discounting, or losing high-value accounts to churn. ARPU also connects directly to Customer Lifetime Value: LTV = ARPU × Gross Margin × (1 ÷ Churn Rate). A higher ARPU raises the ceiling for how much you can sustainably spend on customer acquisition.

Use the ARPU Calculator to do this instantly.